Mortgage Payment Protection Plan

StartingAgainKayla70

Please can someone shed some light and in lamens terms. thank you

I have a repayment mortgage

I pay payment protection on this at level term

Is it true that level term is better for interest only

Am I better off paying a decreasing life cover instead

Paying at the moment £65.00 a month on £150k mortgage(level term)

Did a quick quote on Decreasing Life Cover for £150k and its £15 a month

Any advise would be great, as I dont want to pay something if its not viable.

PS A financial advisor sorted the original out for us. (not sure if that makes a difference)

Thank you

dunstonh

A decreasing term assurance should be used with a decreasing death. I firmly believe that family protection is one thing and mortgages are another and that the mortgage should have its own policy and the family another. Usually as the terms are not constent with each other.

The exception maybe where your budget cannot stretch to fully covering mortgage and family and the decrease in the mortgage value over the years effectively increases the life cover amount going towards family protection.

StartingAgainKayla70

Thank you

I do have life assurance to cover myself and OH £150k

Do I need a level term cover as I have £65(costly) a month with mort

Or is it just best of getting a decreasing one with the mort

dunstonh

I do have life assurance to cover myself and OH £150k

£150k would give £7500 p.a. income other half on death. It may or may not be enough depending on your other debts and income requirements.

Do I need a level term cover as I have £65(costly) a month with mort

A decreasing term assurance would be the logical product to go with a decreasing mortgage.

StartingAgainKayla70

Absolutely fantastic, thank you so much.

Will re look into the life assurance one though. 7500 pa isnt much.


Thanks again for taking the time out to reply.